Merger & Acquisitions - Essay Example

Toronto Dominion Bank (TD) Bank on the other hand is also a multinational bank situated in Canada. It offers multinational banking and financial services and its market capitalization makes it the second largest bank in Canada. TD has four main divisions that is, Canadian Retail Banking, US retail Banking, wholesale Banking and Wealth Management insurance. It is evident that this bank has many branches in the US than in Canada and is focused on expanding its US retail banking business. TD bank consists of the shareholders, board of directors who appoint cooperate governance committee, the human resource committee, the audit committee, the risk committee as well as the management.

TD bank consists of almost 79,000 team members. With globalization, there has been great development in the international banking as cross boarder capital movement as well as the unification of financial institutions across the globe. Many banks across the world have had a hard time to cope with constant changes and intense competition in the banking sector and this has led to many banks merge so as to cope with the competitive global economy. A merge can be defined as the buying of one company by the other or the unification of two or more banks to form one new bank with an aim of achieving mutual benefits.

The reason why TD bank and Wells Fargo should merge is because unifying will enable the banks restructure their entrepreneurial work and look deeply into their strategies of wealth and insurance, personal and commercial banking, wholesale banking and community banking. Wells Fargo services $ 1.8 trillion in home mortgaging. The merging will help the companies provide financial goals by offering financial services to the customers. According to Sylvia Reynolds, Wells Fargo’s marketing director, showing stability to the customers will enable the customer’s earn the company’s trust and this may be acquired through re-shaping and changing some policies to best serve the customers’ needs (Adubato 2011).

The merging will therefore lead to restructuring the companies’ policies towards offering qualitative and quantitative services to their customers. Through the merge, the size of the Well and TD banks will increase. Their production procedures will be rationalized and the banks will be efficient in terms of providing services. The banks will increase the margin of interest rates on loans and deposits in the retail banking market since the customers will have few alternative sources of finance services.

The merging of TD bank and Wells Fargo will promote better customer care and this will make TD maintain their customers and reduce the number of customers shifting to other banks due to poor customer care. This is because Wells Fargo is committed to maintaining customers through constantly offering additional services, thanking them and greeting them on a regular basis and this drives more customers to the bank (Adubato 2011) and has over 70 million customers World Wide. The merging of the two banks will therefore promote betterment in attending to customers’ financial needs including offering insurance, brokerage and investment services among other services.

This will attract new customers and maintain the old customers. The merge of Wells Fargo and TD bank is more likely to